{"id":2948,"date":"2009-07-16T09:41:05","date_gmt":"2009-07-16T14:41:05","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=2948"},"modified":"2009-07-16T09:41:05","modified_gmt":"2009-07-16T14:41:05","slug":"eurusd-hopes-to-settle-above-our-3rd-tier-downtrend-line","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2009\/07\/16\/eurusd-hopes-to-settle-above-our-3rd-tier-downtrend-line\/","title":{"rendered":"EUR\/USD Hopes to Settle Above our 3rd Tier Downtrend Line"},"content":{"rendered":"

By Fast Brokers<\/strong> – The EUR\/USD managed to build a temporary base above 1.40 earlier today, and has proceeded to propel off of our 2nd tier uptrend line after JPMorgan\u2019s 2nd quarter earnings blew away analyst expectations.\u00a0 Volume seems to be picking up, and we could finally view a technical breakout should sufficient buy-side action persist.\u00a0 The EUR\/USD has cruised past our 3rd tier downtrend line, a key near-term barrier since it runs through July highs.\u00a0 We\u2019d like to see momentum keep price comfortably above our downtrend lines for the immediate term to avoid the possibility of a retracement.\u00a0 If the EUR\/USD can\u2019t stay above our 3rd tier downtrend line we may see a small pullback with the possibility of consolidation.\u00a0 This rally could have legs since we\u2019ve seen very positive earnings results so far this week.\u00a0 IBM and Google will report later today, and if they surpass analyst expectations this may be enough juice to send the EUR\/USD over the top.\u00a0 Meanwhile, 1.40 is fading into the rearview mirror, meaning previous July highs may be taken down next.\u00a0 We\u2019re out of downtrend line formations for the time being, a positive signal for the near-term.\u00a0 We still need to see how the EUR\/USD builds off of today\u2019s momentum.\u00a0 However, with U.S. unemployment claims coming in well below analyst expectations for the second week in a row, there\u2019s more positive than negative news today.<\/p>\n

On a cautionary note, CIT isn\u2019t having any breakthroughs with their negotiations for another shot of liquidity, meaning the business lender may file for bankruptcy on Friday.\u00a0 Though some analysts state the failure of CIT wouldn\u2019t pose any systemic risks, it remains to seen what impact a pending bankruptcy could have on the U.S. economy and its currency.\u00a0 However, investors seem to be brushing the CIT news aside, and are focusing on the encouraging earnings reports.\u00a0 It\u2019s interesting how the Euro is exhibiting a relative strength, as seen in the EUR\/GBP, since this week\u2019s economic data from the EU underperformed.\u00a0 When banking on the concept of a global economic recovery, investors may opt to invest in the Euro vs. lower interest rate currencies since the EU hasn\u2019t made as large of a commitment to liquidity.\u00a0 An immediate-term key for the EUR\/USD will be taking a leg up from our 3rd tier uptrend line.\u00a0 Meanwhile, keep an eye on the currency pair\u2019s interaction July 1st highs should they be reached.\u00a0 Once again, with the EU\u2019s economic data out of the way for the week, the EUR\/USD\u2019s performance should rely heavily upon 2nd quarter earnings reports and U.S. equities.\u00a0 Even though the S&P futures are off slightly pre-market, the EUR\/USD\u2019s performance to the upside could be good news for the U.S. markets.<\/p>\n

Present Price: 1.4140<\/p>\n

Resistances: 1.4145, 1.4166, 1.4183, 1.4201. 1.4224<\/p>\n

Supports: 1.4126, 1.4106, 1.4091, 1.4071, 1.4055<\/p>\n

Psychological: 1.40<\/p>\n

\"\"<\/a><\/p>\n

Market Commentary<\/strong><\/em> provided by Fast Brokers<\/strong><\/span><\/a>.<\/p>\n

Disclaimer:<\/strong> FastBrokers\u2019 market commentary is provided for information purposes only and under no circumstances should be regardedneither as an investment advice nor as a solicitation or an offer to sell\/buy any financial product. FastBrokers assumes no responsibility or liability from gains or losses incurred by the information herein contained.<\/p>\n

Risk Disclosure:<\/strong> There is a substantial risk of loss in trading futures and foreign exchange. Please carefully review all risk disclosure documents before opening an account as these financial instruments are not appropriate for all investors.<\/p>\n","protected":false},"excerpt":{"rendered":"

By Fast Brokers – The EUR\/USD managed to build a temporary base above 1.40 earlier today, and has proceeded to propel off of our 2nd tier uptrend line after JPMorgan\u2019s 2nd quarter earnings blew away analyst expectations.\u00a0 Volume seems to be picking up, and we could finally view a technical breakout should sufficient buy-side action … <\/p>\n

Continue reading “EUR\/USD Hopes to Settle Above our 3rd Tier Downtrend Line”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-2948","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2948","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=2948"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/2948\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=2948"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=2948"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=2948"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}